The Risk Averse Alert

Despite going nowhere today, you really have to like how the market held up...




You see a price-RSI divergence at today's low, leading to a turn higher ... then another during the last hour of trading, probably meaning the market will start the day Wednesday under some pressure.

The 400 area should be the vicinity where support builds. Other than the possibility of selling leading the market lower tomorrow ... serving to consolidate Friday's and Monday's gains ... trading might otherwise be rather dull.




The relative collapse of the CBOE Put/Call Ratio should be seen as a double edge sword. On one hand, there appears to be belief in the market's charge higher from lows late last week. On the other hand, though, it appears something of a test of that belief might be in order. This could take several days...

If you're interested, check out my 401(k) Investor's Guide to the Year 1932.






© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

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